Latvia is not backing-off from the requirement on equal competition conditions for all the EU farmers

On December 17 and 18, the Minister for Agriculture, Jānis Dūklavs will arrive to Brussels where Member States will continue discussions at the EU Council of Ministers for Agriculture and Fishery, on the Common Agricultural Policy reform, offered by the European Commission for the next programming period after 2020.

“We are not supporting now and will not in the future such a considerable reduction in the budget of the Common Agricultural Policy, taking into account that the new policy, proposed by the European Commission, is envisaging new ambitious objectives. It will be impossible to achieve these objectives with the proposed funding,” emphasizes the Minister for Agriculture, Jānis Dūklavs.

Latvia is invariably demanding fair direct payments after 2020, as only then equal support measures will be ensured for farmers in all the Member States. Latvia objects against the reduction in funding for rural development – the funding must be retained at least at the level of 2014 – 2020.

It was already reported that on May 2, 2018, the European Commission made known its proposal on the EU multiannual budget for 2021-2027, envisaging that the planned CAP funding in the next seven-year- financial period will be reduced by 5%, as compared with the current EU multiannual budget 2014 – 2020. Whereas, on June 1, COM published the proposal for Regulations on CAP for 2021 – 2027, also including the distribution of EU funding for direct payments and rural development policy to Member States. According to this proposal, in the next programming period, the funding envisaged for rural development in Member States will be reduced by 15% as compared with 2014 – 2020 that for Latvia would mean the reduction by EUR 147 million.

Assuming that a gradual adjustment of direct payments would be also applied in next fiscal period, then according to estimates, made by the Ministry of Agriculture, direct payments to Latvia’s agriculture would slightly increase, only in 2026, reaching 80% of the EU average level of direct payments (in 2020, direct payments in Latvia will reach 68% of the average level).